The news: Shein is struggling to shake the regulatory hot seat in both Europe and the US.

• EU regulators are weighing an investigation amid intense scrutiny in France after authorities discovered illegal firearms and child-like sex dolls for sale on the site.
• Texas Governor Greg Abbott added Shein, along with Temu and Alibaba, to the list of prohibited technologies for state employees and devices, citing data privacy concerns.

The challenges: Operating conditions for Shein and other Chinese ecommerce platforms have gotten tougher as governments raise concerns about cheap imports undercutting local businesses.

Duty-free exemptions are fast becoming a relic, with more countries either getting rid of them or deploying fees on low-cost imports in an attempt to level the playing field.

• Starting July 1, the EU will charge a €3 ($3.38) per-item duty on low-value parcels; it eventually plans to phase out the de minimis exemption altogether.
• Shein suspended operations in Turkey after the country’s government eliminated duty-free allowances.
• Japan, Mexico, and South Africa have either proposed eliminating or removed de minimis thresholds.

The implications: Despite the regulatory pressure, Shein continues to grow—albeit at a slower pace.

• We expect Shein’s US ecommerce sales to increase 8.5% this year to $20.51 billion, putting it nearly on par with Target’s online business.
• In France, where Shein narrowly escaped a suspension, the platform ranks as the fifth-largest clothing retailer by volume and attracted an average of 19.5 million unique visitors monthly as of Q3 2025.

While regulatory action may impede Shein’s growth, the retailer’s broad selection and lower prices make its appeal to consumers as potent as ever.